According to Foresight News, SafeMoon, a DeFi protocol on the BNB Chain, has officially applied for Chapter 7 bankruptcy. In November, the US Securities and Exchange Commission (SEC) accused SafeMoon LLC, its founder Kyle Nagy, SafeMoon US LLC, CEO John Karony, and CTO Thomas Smith of implementing a large-scale fraud scheme by selling unregistered crypto asset securities.
Braden John Karony was arrested in Provo, Utah, while Thomas Smith was arrested in Bethlehem, New Hampshire. Kyle Nagy remains at large. The bankruptcy filing comes as the company faces legal challenges and allegations of fraudulent activities.
